Debt AffectsColorado Renters and Homeowners

When it comes to debt, the providers of CareOne Debt Relief Services® have been in your shoes. We got out of debt, and you can too. Although every situation is different, the goal is the same—to become debt-free. We know what it takes to reach that goal, and we are passionate about helping others reach their financial goals, too.

While it appears that unemployment is as elevated in Colorado as it is in the rest of the country, Colorado residents who are employed are averaging higher salaries, as the median household income is higher than the national average, at $56,4561.

Even though residents are averaging higher salaries, Colorado residents are carrying higher amounts of consumer debt. According to a CNN Money report, the average amount of personal credit card debt owed in Colorado was $7,533 which was 15% higher than the national average in 20112. Our internal data supports this, the debt average decreased 2% from 2010 to 2011, but the amount is still 11% higher than our national average.

Some of the pressure residents may be feeling is exacerbated by the Colorado housing marketing. Census data shows that there is a slightly higher ownership rate (67.6%) in Colorado compared to the rest of the country (66.6%)2. However, according to RealtyTrac.com (a foreclosure data aggregator) Colorado is currently experiencing a high rate of foreclosure. They estimate that one in every 677 housing units is now in foreclosure1. The majority of residents we see who are seeking debt relief in Colorado are renters and the number of renters seeking debt relief is 4% higher than our national average, but our internal data also shows the number of homeowners seeking debt relief has increased 10% from 2010 to 2011, though that number is still 6% below our national average. Houses are one of the most important assets a consumer can acquire, and the fact that so many renters and homeowners in Colorado are seeking debt relief is disconcerting.

Colorado residents can regain control of their money and work toward achieving their financial goals through debt consolidation. Two debt options are a Debt Management Plan (DMP) and a Debt Settlement Plan (DSP). With a DMP, you combine your unsecured debt into a monthly payment that’s affordable and can allow you to lower your interest rates, which can help you pay down debt faster. With a DSP, you make monthly deposits into an escrow account until a settlement is reached with your creditors, and then the creditors are paid from the account.

Regardless of how you got there, we understand what it’s like to be in debt, and we know what it takes to become debt-free. We are committed to helping people in Colorado achieve financial freedom. Call to speak to one of our Certified Personal Finance Counselors® today to learn more about your options and to receive a free debt relief analysis.